Chapter 30 Post Quiz
Open-Economy Macroeconomics

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Imports	a. will result in an increase in the exchange rate and a decrease in net exports.
	2. Net foreign investment	b. equal to 1/(MPS+MPm).
	3. Marginal propensity to import	c. goods and services produced abroad and consumed in the United States.
	4. Open-economy multiplier	d. found that there are large differences in productivity between firms in the same industry.
	5. High levels of per capita economic growth	e. a group of regions that has high labor mobility or has common and synchronous aggregate supply or demand shocks.
	6. Increased government spending	f. refers to the net saving or investment abroad and is approximately equal to the value of net exports.
	7. Uncompetitiveness	g. will arise when prices are out of line with those of trading partners.
	8. McKinsey Study	h. the increase in the dollar value of imports that results from a dollar increase in GDP.
	9. German reunification	i. result from high saving and investment rates.
	10. Optimal currency area	j. the primary cause of the EMS crisis in 1989-1993.